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Jervois Mining Ltd
Symbol JRV
Shares Issued 802,616,030
Close 2021-07-16 C$ 0.51
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Jervois closes $100-million (U.S.) bond offering

2021-07-21 20:00 ET - News Release

Mr. Bryce Crocker reports

JERVOIS SETTLES US$100M BOND OFFERING; PURCHASES ICO ACCOMMODATION CAMP

Jervois Mining Ltd.'s bond offering announced on July 5, 2021, has now settled, with the net proceeds of the bond offering placed into a U.S.-dollar-denominated escrow account of Jervois Mining USA Ltd. in exchange for the bonds being issued in accordance with their terms. The bonds are debt instruments only, with no attached equity warrants or equity conversion features. Clarksons Platou Securities acted as manager for the bond, and Jervois's financial adviser in relation to the bond was Magma Capital Advisory.

Jervois will use the net proceeds from the bond offering for capital expenditures, operating costs, and other costs associated with the construction and commissioning of its 100-per-cent-owned Idaho cobalt operations (ICO) in the United States. First production from ICO continues to be expected from mid-2022.

The first of two drawdowns of 50 per cent of the bonds offering proceeds from the escrow account is anticipated in Q4 2021, following satisfaction of the conditions precedent to withdrawal, as outlined in the company announcement on July 5, 2021, which include inter alia Jervois raising additional equity of at least $50-million (U.S.) and spending $35-million (U.S.) toward the ICO project. The second drawdown, expected during 2022, is also conditional on Jervois owning at least 51 per cent of the SMP refinery or Jervois executing offtake contracts for ICO cobalt concentrate with third parties for a specified volume and period.

Completion of the Ausenco-led bankable feasibility study (BFS) for a restart of the Sao Miguel Paulista (SMP) refinery in Brazil is expected in late Q3 2021, with closing of the agreed acquisition by Jervois of 100 per cent of the facility scheduled before the end of this calendar year. Terms and conditions of the SMP refinery purchase are outlined in a Sept. 29, 2020, press release entitled, "Sao Miguel Paulista nickel and cobalt refinery acquisition."

ICO accommodation camp

Jervois has also committed to purchase for ICO a 100-person camp, and associated service facilities (sleeping quarters, kitchen and dining facilities).

Following final permits related to full operation of the camp, it will support construction and commissioning activities at ICO, and then transition into providing year-round accommodation for operations.

Establishing the camp will reduce the travel requirements for the continuing construction and operations teams, saving time and reducing fatigue risk for vehicle accidents.

Purchase of the camp supports Jervois's schedule for expected concentrate production from ICO in mid-2022, making it the only cobalt mine in the U.S. for a commodity identified by the government as a strategic mineral of critical importance. Cobalt is on a list of critical minerals developed by the Department of the Interior in co-ordination with other U.S. executive branch agencies pursuant to Executive Order 13817 entitled, "A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals" (82 FR 60835) with the list released in May, 2018 (83 FR 23295).

Full text of the terms and conditions of the bonds have been filed on, and are available on, Jervois's corporate profile on SEDAR. Jervois has applied to list the bonds on the Nordic Alternative Bond Market (ABM) pursuant to the bond terms.

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